Michigan’s Ford Motor Company Subsidy

From the BBC via CrooksAndLiars.com, it turns out that the state of Michigan is throwing some pretty serious cash at Ford:

BBC NEWS | Business | Michigan secures Ford investment

US state Michigan has agreed to give Ford Motor $300m (£155m) to keep open six of its factories in the state.

The move, which amounts to subsidies of about $23,000 per worker, could help safeguard 13,000 jobs in the state.

In return, Ford has vowed to invest $866m to upgrade the ancient equipment in the plants.

The firm had threatened to go to other neighbouring states, such as Minnesota and Indiana, which had also been prepared to offer subsidies.

Did anyone in Michigan notice that Ford is planning on closing plants in Minnesota? Why not just call Ford’s bluff on this one?

Or, thinking a bit longer term, why not help Ford invest in building cars people want to buy rather than helping Ford crank out cars that have a hard time competing against more efficient models built by foreign competitors?